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New Member
posted May 31, 2019 5:29:56 PM

Losses in a foreign cash account due to devaluation of the foreign currency over time.

I have a foreign securities account tied to a foreign cash account for holding sales proceeds. I have paid capital gains on all sales while maintaining the proceeds in the foreign account. Due to devaluation of the foreign currency over time,  when I withdraw money and convert it to USD, I receive less than I declared for capital gains. Can I take a loss from the devaluation?

1 2 5980
1 Best answer
New Member
May 31, 2019 5:29:57 PM

Yes, you can report your loss on your foreign currency conversion by following the steps below:

  1. Select Personal taxes
  2. Select Wages & income
  3. Select I'll choose what I work on
  4. Scroll to the section Less common income
  5. Select the line that reads Misc income 1099-A 1099-C
  6. Select the line Other Reportable Income

You will then add an item titled "Loss on foreign currency transactions." and enter the loss as a negative amount.

You may use the average exchange rate of 2015 or the exchange rate on the date you changed the money.

http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

http://www.oanda.com/currency/historical-rates/

2 Replies
New Member
May 31, 2019 5:29:57 PM

Yes, you can report your loss on your foreign currency conversion by following the steps below:

  1. Select Personal taxes
  2. Select Wages & income
  3. Select I'll choose what I work on
  4. Scroll to the section Less common income
  5. Select the line that reads Misc income 1099-A 1099-C
  6. Select the line Other Reportable Income

You will then add an item titled "Loss on foreign currency transactions." and enter the loss as a negative amount.

You may use the average exchange rate of 2015 or the exchange rate on the date you changed the money.

http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

http://www.oanda.com/currency/historical-rates/

New Member
Jun 29, 2022 9:17:30 AM

How can I claim the loss on the IRS forms?